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How to build a better business with business process outsourcing?

Author: Jitender Ahuja
by Jitender Ahuja
Posted: Jun 09, 2017

Every business organization, whether big or small, depends upon its Back Office Support Services. Such services are the back- bone of the organization. They play their role in the growth and success of the business silently without coming to the forefront. Recognizing the importance of Back Office Support Services, the Companies, entrust this important task to the BPO Companies.

In the present day scenario, an entrepreneur can almost outsource each and every activity related to the business. Outsourcing has become widely popular due to cost cutting factors which directly affect the profits. On the same hand, a large number of the entrepreneurs are of the view that successful management focuses on the core issues. In their opinion, back office services are of such nature that could be outsourced on more economical terms. They also feel that outsourcing of back office services yields better results and involve lesser investment and operational expenses.

Along with outsourcing, the concept of offshoring has also gained favor with the companies. The reason is, offshoring offers the opportunities to obtain the best at the favorable competitive price. In the common parley, the expression offshoring relates to the procurement from the outer geographical areas.

Categorisation of Services

In a business set up, the services are categorized into two parts, i.e. Front End Services and Back Office Support Services. The line of demarcation that divides the office operations into two segments is that the while the first remains on the front to interact with the customers, whereas the second prepares and manages the database that plays a key role in the growth and development of the organization.

Origin Of The Terms

The origin of the term and expression "Back Office" relates to the office set up. Normally, in the business organizations and Corporate House, the staff who has to deal with the visitors and the customers are to sit in the front section of the office. Similarly, the other staff members who are not expected to interact directly with the visitors or the customers, are required to sit in the back side compartments.

The industry has seen wholly centralized management who believed that a successful entrepreneur is that who has everything under the roof, he is a competent entrepreneur and he can handle the affairs within the premises. There are others who believe that distribution of the workload keeps you lighter and that helps in smooth functioning, as well as proper management of the affairs.

Departments That Render Back Office Support

The departments that remain behind the scene are directly related to the administration of the organization. These include Human Resource, Accounts, IT, Computers & Data Base, Finance and Accounts, Production, R & D, Online Sales, e-Commerce, and Online Customer Support, etc.

Importance of Different Back Office Operation Departments

Which of the back office departments is more important, it varies from industry to industry. A highly efficient IT and Customer Data Base Management department could be more important for a Bank that provides entirely computers linked services of ATM transactions, Debit & Credit Card Payment System, Online Banking & Mobile Phone Banking Services whereas the same may be of lesser importance for a company manufacturing the machinery & equipment.

The advancement of the technology has made the task of outsourcing so easier to the extent as it was never before.

Outsourcing The Strategies

Now a day, outsourcing of services is not confined only to the procurement and hiring of the workforce for managing the affairs of the organization.

The scope of the BPOs has widened much beyond that. The think tank working in the industry and Back Office Service Providers have evolved new techniques and developed new strategies. They intend to deliver something new and also expect their clients to accept the same so that both of them should hold the ground in a highly competitive market.

One of such strategies is, forming effective plans for cutting down the operational costs. This strategy works behind the scene and goes a long way in pricing the products at the possible lowest level. A good quality product at a lower price is always favored by the user. BPOs have talented, as well as experienced planners to deliver their plans through outsourcing window.

Surveys

Pre-production surveys have also been found to be of great help in launching new products that match the tastes of the users. BPOs through field staff, as well as by online methods, conduct statistical surveys on the specific demand of the customers. Products that stand to the requirements of the users get a ready market and face lesser competition.

Business Analytics

BPOs provide Business Analytic Services to the clients. They go through the past functioning of the organization and recognize the factors responsible for its slow growth. They lay down strategies and form an effective plan that enables the organization to stand-up.They focus on fact-based management, the facts collected by searching the past functioning viz-a-viz performance. These analytics cover all the important areas, such as Production Optimisation, Financial Management, Pricing, Sales & Marketing, Transportation & Delivery, Procurement, Cost-Cutting and so on.

Outsourcing SAP Support Team

With the motive of laying a solid foundation, a large number of big and large organizations, and most of the Corporate use the SAP technology. Using the SAP for a fruitful outcome requires highly skilled SAP professionals. A medium sized organization may not be able to acquire the SAP professional of such a caliber. A large number BPOs have their in-house SAP professionals and they offer their outsource SAP support. Otherwise also, maintaining an in-house SAP support team is much more expensive than outsourcing this service from a BPO.

Essentials

The relationship between a client and the BPO Service Provider involves bonds of mutual trust and sincerity. It is much beyond a vendor-customer tie-up. A sincere BPO service provider delivers to its client that satisfy the end user. He is expected to honor the unwritten feelings of trust and to maintain a complete confidentiality of business secrets of the client.

About the Author

Please Visit to know more:- a href= "http://www.iccs-bpo.com/" Iccs Bpo

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Author: Jitender Ahuja

Jitender Ahuja

Member since: Oct 24, 2016
Published articles: 22

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